LAHORE: The Federal Investigation Agency (FIA) has directed provincial police authorities to take immediate and coordinated action against the anticipated hoarding and smuggling of urea fertiliser, as concerns mount over a possible supply shortfall driven by import constraints and global market pressures.
In a “most immediate” letter issued, the FIA headquarters in Islamabad informed the inspectors general of police in Punjab, Sindh, Khyber Pakhtunkhwa, Balochistan and Islamabad Capital Territory that the Prime Minister’s Office had expressed serious concern over the country’s urea supply chain.
The communication warned that ongoing international developments affecting fertiliser production, including disruptions in global energy markets and export limitations by major producing countries, are expected to constrain imports. As a result, domestic availability of urea is likely to face a significant gap in the coming months, particularly during peak agricultural demand.
The FIA noted that the emerging situation could be further aggravated by a widening price differential between Pakistan and neighbouring countries, creating strong incentives for illicit cross-border trade. Historically, such disparities have led to the diversion of subsidised fertiliser to regional markets, undermining domestic availability.
The agency also pointed to the risk of market manipulation within the country. It observed that organised criminal groups and market participants with vested interests may attempt to exploit the situation through large-scale hoarding, creating artificial shortages to drive up prices. Such practices have, in previous instances, resulted in supply disruptions, long queues for farmers and increased input costs for the agriculture sector.